circuit breaker

Circuit Breakers Let Cooler Heads Prevail

Why do circuit-breakers on stocks make sense? A simple manual cross-check of prices can help mitigate volatility "if things get out of whack," says Doreen Mogavero, CEO of Mogavero Lee & Co., in a video interview from the floor of the NYSE.

How the New SEC Circuit Breakers Are Wired

Under the SEC proposal, any S&P 500 stock that experiences a 10% swing within five minutes would receive a timeout, and trading in that stock would pause for five minutes across all domestic equity markets. That last point is key.